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Germany Has a €15.5 Billion Reason to Embrace International Students

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April 9, 2025

Germany Has a €15.5 Billion Reason to Embrace International Students

Germany has long been a magnet for international students seeking quality education in a globally respected academic environment. But beyond the cultural and educational value, a recent study reveals a compelling financial reason for Germany to continue opening its doors to global talent.

According to a comprehensive study conducted by the German Economic Institute (IW) on behalf of the German Academic Exchange Service (DAAD), international students significantly bolster Germany’s economy—contributing almost eight times more to public funds than the government invests in their education.

Germany Has a €15.5 Billion Reason to Embrace International Students

The Numbers Tell a Powerful Story

The IW study, the first of its kind to fully trace the economic journey of international students from enrollment through to retirement, found that just one cohort—80,000 international students who began their studies in 2022 with the aim of graduating—will generate a staggering €15.5 billion more in taxes and contributions than they will receive in state benefits over their lifetimes.

Even under conservative estimates, the results remain impressive. For example:

  • With a 30% retention rate, the net fiscal gain is projected at €7.4 billion.

  • A 50% retention rate could lead to a surplus of €26 billion.

  • And if 40% of students stay in Germany after graduation, their tax contributions would cover their education costs within just three years.

Why Retention Matters

Germany’s ability to retain international talent is already among the highest in the world. According to OECD data, Germany—alongside Canada—boasts a 45% student retention rate, meaning nearly half of all international students still reside in the country a decade after beginning their studies.

The study analyzed three different scenarios:

  • High retention: 500 of every 1,000 students stay long-term.

  • Medium scenario: 400 remain for 10 years, 200 for life.

  • Lower retention: 300 stay for a decade, 75 permanently.

All scenarios indicated a strong economic upside, reinforcing the long-term value of international students who choose to build their futures in Germany.

Germany’s Growing Appeal to Global Students

With over 405,000 international students currently enrolled, Germany is the most popular non-English-speaking study destination in the world. A DAAD survey further found that 65% of international students who intend to graduate also plan to remain in Germany afterward—a testament to the country’s welcoming environment and career opportunities.

A Call for Continued Support

The DAAD stresses that the economic benefits of international students can be fully realized only through continued support and strategic policy. This includes:

  • Providing targeted scholarships and financial aid.

  • Strengthening university-business-government collaborations.

  • Promoting integration and career guidance initiatives.

“We must provide international students who familiarise themselves with Germany during their studies and want to stay here after graduation with the best possible support in starting a career,” said Joybrato Mukherjee, President of the DAAD.

Conclusion

At Safeland International, we’ve always believed that education is not just an investment in individuals—it’s an investment in the future of nations. This landmark study reaffirms that international students are powerful drivers of long-term economic growth, innovation, and cultural exchange. With Germany poised to gain billions through the contributions of global talent, it’s clear that welcoming international students is a win-win strategy.

As facilitators of international education, we’re proud to guide students on their journey to study in destinations like Germany—where their ambitions are met with opportunity, and their presence makes a lasting impact. At Safeland, we remain committed to opening doors to a brighter global future, one student at a time.

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“Welcome to Safeland International – Best German study abroad consultancy,  your dedicated partner for turning academic dreams into reality in Germany! At Safeland, we’re driven by the belief that education transcends borders. Our passion lies in guiding ambitious students, like yourself, on the enriching journey to secure admissions in prestigious German public universities. Safeland International is the top German Language Institute in Kerala, empowering you to achieve fluency and success in Germany.”

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